Posts with tag: house prices

Outdoor space valuable in top London boroughs

Published On: July 21, 2015 at 9:25 am

Author:

Categories: Landlord News

Tags: ,,

An interesting new report from a leading, independent estate-agent suggests that outdoor space in some of the capital’s most sought after areas can substantially increase the value of a property.

Patterson Bowe specialises in property in the boroughs of Knightsbridge, Kensington and Chelsea and believes that outdoor space in the postcode areas of SW3 and SW7 can increase property values by anything up to 20%.[1]

Extensions

The agent has stated that gardens, roof terraces and simply being near to greenery such as a park can all largely contribute to the overall value of a property in these areas. Patterson Bowe also indicate that homes of a comparable size and location with limited or no outdoor space could command between £80-100,000 less in the market.

Research also shows that gardens command the greatest additional value, adding around 20% to the overall value of a property. In addition, the agent suggests that garden squares alone can add 15% of a final property value.[1]

Outdoor space valuable in top London boroughs

Outdoor space valuable in top London boroughs

‘While the warmer months are upon us, Londoners who are fortunate enough to have their own outside space count their blessings,’ said Stuart Patterson, Managing Director of Patterson Bowe. ‘The benefits of London living combined with the luxury of outdoor space are both highly sought after and highly expensive.’[1]

Patterson continued by saying, ‘property with private outdoor space is obviously the most desirable but even those with access to a communal garden square or proximity to a public green space can still add a surprising amount of value; especially in Summer.’[1]

[1] http://www.propertyreporter.co.uk/property/20-premium-for-outdoor-space-in-top-london-boroughs.html

 

 

Property Price Trends have Reversed

Published On: July 20, 2015 at 5:16 pm

Author:

Categories: Landlord News

Tags: ,,,

Property prices followed a clear trend over the last ten years, but this pattern has reversed, says Rightmove.

The property portal found that house prices are increasing sharply in the North East of England and dropping substantially in Kensington and Chelsea.

Property Price Trends have Reversed

Property Price Trends have Reversed

Within the London Borough of Kensington and Chelsea, the average asking price has decreased by over £178,000 to £2.29m during July, a 7.2% fall.

However, in the North East, prices are up 2.1% over the month to an average of £147,251. The region experienced the largest increase in asking prices of anywhere in the UK.

Meanwhile, the South East, the South West and the West Midlands all recorded price drops in July, found Rightmove. However, the portal’s monthly regional figures are regarded as unstable.

Annually, asking prices in London saw the highest gains, increasing by 7.8% over the year. Wales recorded the greatest decline, of 1.7%.

The overall data for London somewhat disguises the huge differences between boroughs. Typically unpopular areas, such as Redbridge, Waltham Forest, Hillingdon and Merton, witnessed rises of up to 15%. Prices stagnated in expensive areas such as Islington, Fulham and Richmond.

The average asking price in England and Wales rose slightly during July, by 0.1% to reach a record of £294,542.

Earlier this month, the Royal Institution of Chartered Surveyors (RICS) released figures that mirror Rightmove’s discovery that there was a sharp decline in the amount of homes up for sale.

Rightmove found: “The number of properties coming to market is running at a weekly run-rate 10.6% below the same period in 2014. The biggest drop-off in fresh supply is in the typical first time buyer sector with two bedrooms or fewer.

“The shortage of suitable property for sale highlights the need for an urgent and marked increase in the overall housing stock to help keep pace with the growth in household formation.”1

Rightmove has noted a growing battle between first time buyers and buy-to-let investors over the short supply of two-bedroom flats and houses.

In the beginning of July, RICS reported that the amount of homes for sale was at its lowest level since records began in 1978. It cautioned that the lack of stock is a vicious cycle as vendors are put off selling because there are no homes to move to.

1 http://www.theguardian.com/business/2015/jul/20/house-prices-reverse-trend-increase-north-east-fall-london

 

Owning property a pipe-dream for many renters

Published On: July 20, 2015 at 12:53 pm

Author:

Categories: Landlord News

Tags: ,,

A discouraging report suggests that a high number of private renters in the UK believe that they will never be able to afford their own home.

Research from construction and regeneration company Keepmoat indicates that 44% of renters in Britain feel they will be unable to get onto the first rung on the property ladder.[1]

Priced out

Average house prices in England and Wales now stand at £178,000, according to official figures from the Land Registry. However, there remains a significant regional variation in property values. House prices in London for example currently total £462,799.[1]

In general, house prices in the North are generally more affordable. Despite this, 62% of non-homeowners in Liverpool feel that they will never own their own home. 60% of would-be homeowners in Glasgow and Newcastle echoed this sentiment.[1]

Being unable to raise funds for a deposit was the most common reason for not getting onto the property ladder, with 56% of respondents to the survey saying this was the case. Of current homeowners taking part in the survey, 38% said it took between two and five years to save for their deposit. 13% said that it took up to ten years for them to save the required amount.[1]

Owning property a pipe-dream for many renters

Owning property a pipe-dream for many renters

Help…with Help to Buy

More concerning data from the report suggests that there is low awareness of the Government’s Help to Buy scheme. Less than one-third of respondents said that they would be using the initiative to buy their homes, with a further 38% of people claiming that they do not know what the scheme is.[1]

‘It’s clear that the amount of money first time buyers need to raise for a deposit continues to stop many from getting on the property ladder,’ said Dave Sheridan, chief executive of Keepmoat. ‘However, we were surprised that the results show Londoners are more confident about owning a home than those in other cities, particularly in the North,’ he continued.[1]

‘There is plenty of assistance available for buyers in the form of the Help to Buy scheme and help is available when saving for a deposit with the Help to Buy ISA,’ Sheridan added.[1]

[1] http://www.propertywire.com/news/europe/uk-would-be-buyers-2015071710762.html

 

 

UK property medium term growth forecast lowered

Published On: July 14, 2015 at 11:19 am

Author:

Categories: Landlord News

Tags: ,,

New forecasts indicate that the Government believes that house prices will continue to grow in the medium term, but at a slower rate than previously predicted.

Largely due to changes in lending criteria, the Office for Budget Responsibility predicts that overall, house prices will rise by 34.1% by the opening quarter of 2021. This represents a revision from the last guidance issued in March of this year.[1]

Changes

The Office for Budget Responsibility revealed that alterations to the regulatory environment, coupled with changes in lenders’ behaviour as a result of the Mortgage Market Review as the main reasons for the downgrade in growth forecast.

As a result, the new forecast is 5% lower than it was in March.

Additionally, the Office for Budget Responsibility has also changed its Stamp Duty revenue forecasts. Now, Stamp Duty is predicted to raise £11.5 billion in 2015/16, rising to £17.3 billion in 2019/20. This was in comparison to March’s forecast of £10.4 billion and £18 billion respectively.[1]

Short-term forecasts for Stamp Duty receipts have been altered due to an increase in property transactions at the end of the 2014/15 financial year. The Office for Budget Responsibility expects this trend to continue.

Hot summer?

Experts also predict that the selling market will continue to be busy throughout the summer months. Traditionally, the prime periods for selling property have been in March through to the end of June, with another surge in activity between September and October.

However, data from an investigation by real agent firm Knight Frank suggests that there has been a change in this trend in recent years, with sales continuing through the normally quieter summer period. The firm suggests that the number of properties sold by themselves between June and August 2014.

UK property medium term growth forecast lowered

UK property medium term growth forecast lowered

‘The increase in summer activity is a reflection on a number of factors including the popularity of holidays being taken in the UK and thus being able to see a house more quickly,’ stated Rupert Sweeting, head of Knight Frank Country. He also said that the rise of the internet has allowed holiday makers to,’ browse their tablets and phones whilst relaxing.’[1]

We are seeing this happen again this year principally as the election made many buyers put their decisions on hold until after the result was known. As a result the market is six to eight weeks late. We already have a high level of house bookings going forward this month and in August,’ Sweeting added.[1]

[1] http://www.propertywire.com/news/europe/uk-house-price-forecast-2015071410743.html

 

House Prices Showing Steady Growth

Published On: July 9, 2015 at 9:54 am

Author:

Categories: Finance News

Tags: ,,,

House prices in the UK rose by 3.3% in the second quarter (Q2) of 2015 compared to Q1, making the average price now £200,280, according to the latest property price index.

This indicates that the quarterly rate of change has picked up after two consecutive drops and prices in Q2 were 9.6% higher than the same quarter last year, revealed the Halifax data.

This was greater than May’s 8.6% growth and the highest quarterly increase since September 2014 when it was also 9.6%. On a monthly basis, prices rose by 1.7% between May and June, the fourth continuously monthly increase.

The steady growth in prices arrives as home sales remain stable. Data from HM Revenue & Customs (HMRC) shows that UK home sales rose by 1% between April and May and sales in the period from March to May were 0.5% higher than in the three months before, but were 4.2% lower than in the same period in 2014.

House Prices Showing Steady Growth

House Prices Showing Steady Growth

Halifax Housing Economist, Martin Ellis, says that supply remains very short, with the stock of homes for sale currently at record low levels: “This shortage has been a key factor maintaining house price growth at a robust pace so far in 2015.

“Economic growth, higher employment, increasing real earnings growth and very low mortgage rates are all supporting housing demand with signs of a recent modest pick-up in demand.”1

CEO of Dragonfly Property Finance, Jonathan Samuels, adds that there are mixed signals in the property market as the latest index from Nationwide indicates that prices have dropped slightly.

He also reveals that although prices in London have slowed, house prices per square metre have increased by 45% since 2010, emphasising demand in the capital.

He says: “With economic growth stronger than expected during the first quarter, a buoyant jobs market and people generally better off, you would expect the market to continue to improve throughout the rest of 2015, if at a more moderate rate compared to recent years.”

He also says that the current Euro crisis in Greece could affect the UK property market: “We could see a flight away from equities into bricks and mortar, but at the same time if Europe as a whole is adversely affected, then the UK economy will almost certainly suffer too.”1 

London prime property agency, VanHan’s Thomas van Straubenzee is predicting an influx of enquiries from wealthy Europeans hoping to move their assets from the continent into London, as they seek to avoid the Euro crisis.

He states: “We have seen interest from the Middle East and India pick up again, which is not surprising as we had noticed that these buyers were particularly affronted by the idea of a mansion tax.

“We do not see London house prices slowing down anytime soon, as demand continues to outstrip supply, particularly at the top end of the market.”1

Jonathan Hopper, Managing Director of Garrington Property Finders, claims that vendor expectations have been surpassing what buyers are willing to pay in several parts of the UK, but this over-optimism is being put in check.

“Despite mortgages being at their cheapest level for years and the supply of homes for sale being tight in many price brackets, buyers are still intensely value sensitive,” he says. “Buyer demand is strong but sensible and buyers are being much more sober in their offering behaviour than in the last boom.”

Hopper continues: “Though confidence among both buyers and sellers remains high, as the summer slowdown begins, sellers must be wary of letting their pricing ambitions run away from what the market will tolerate.”1

1 http://www.propertywire.com/news/europe/uk-house-price-index-2015070810723.html

How Long do House Prices Drop For?

Published On: July 3, 2015 at 1:03 pm

Author:

Categories: Finance News

Tags: ,,,

In 2007 and 2008, the country suffered a severe house price crash. In 2010, some areas saw prices bounce back slightly.

After this period, where your property was in the UK greatly affected its price.

Some places experienced continuous price growth from 2010 onwards and they are still rising now.

In some parts, prices became stagnant, and then began to increase in 2013 and 2014. In Brighton and Hove, the average house price is now above 2007-08 levels, while other areas have recovered but are still lower than they were before the crash.

In places like Liverpool and Bradford, the average property price is still almost 30% lower than they were eight years ago.

How Long do House Prices Drop For?

How Long do House Prices Drop For?

When house prices drop significantly, it usually means there is an economic recession. For homeowners, this can be devastating, as the value of their biggest asset is falling and they may also face employment issues.

During these periods, newspaper headlines do not help. The Guardian said: “House prices set to fall by further 12% in 2009”1, while the BBC reported: “House prices ‘fell 15.9% in 2008’.”1

These statements influence buyers and vendors. If the newspaper says prices are falling, house hunters will delay buying, which can then cause prices to decline further, as desperate sellers cut their prices until they sell.

It is difficult to determine how long prices will drop for, but it is possible to look at past trends.

Property expert Kate Faulkner has analysed this data for each of the 32 London boroughs.

Property prices decreased for 18-20 months by 16-18% in the following boroughs: Havering, Hillingdon, Brent and Lambeth.

Most boroughs’ (23) prices fell for 13-17 months. These boroughs saw drops for 17: Barnet, Redbridge, Merton, Southwark and Waltham Forest.

The boroughs that declined for just 13 months were: Hackney, Ealing, Haringey, Richmond upon Thames and Wandsworth.

In terms of the greatest drops, Newham and Barking and Dagenham experienced decreases of 22%, while Hackney, usually one of the capital’s best performing boroughs, saw drops of 21%.

Those falling by less include the City of Westminster at 14% and Southwark, Haringey and Ealing at 16%.

The following boroughs experienced price declines for the shortest period, of just 12 months, with 19-20% reductions: Hounslow, Tower Hamlets and Kingston upon Thames.

The boroughs of Kensington and Chelsea and Camden dropped for only eight and nine months respectively, by 16-17% – also some of the smallest falls.

Analysing these London figures, property prices generally drop for 8-20 months, with the average at just over a year.

If you have an idea of how long prices will decrease for, vendors can plan whether to continue trying to sell or rent out the property until the market has recovered.

Home movers, investors and first time buyers will also benefit from knowing how long property prices will fall for, however, it is never really clear when the bottom has been hit until some time afterwards.

Knowing the length of time prices decline for in a certain area gives an indication of what to look for and also proves that prices won’t drop forever, as some people predicted during the crash.

1 http://www.propertychecklists.co.uk/articles/property-prices-rise-fall